Modern Mangere building with flexible layout

5:00 AM Wednesday September 9, 2015 Colin Taylor

An elevated view of the modern commercial building for sale at 38 Richard Pearse Drive in Mangere.

A large Mangere commercial property featuring an eclectic mix of tenancies has been placed on the market for sale within the Auckland airport precinct.

The 2841 sq m building sits on 4854 sq m of freehold land on one title at 38 Richard Pearse Drive, and is leased to a gymnasium; a physiotherapy treatment centre specialising in treating strain and muscle ailments caused by over-training; and the warehousing activity of furniture retailer Early Settler.

The tenants are:

  • Fitness 24/7 occupying 1317 sq m over two levels with the Active Physio Clinic on the ground floor on a lease generating $198,000 in rent plus GST per annum for six years running through until 2023 with a further two year rights of renewal.  
  • Early Settler taking up 1524 sq m of the ground floor space and paying $138,000 plus GST per annum on a three year lease running through until 2018 with two and one year rights of renewal.
  • R.T.P Physio Ltd paying $15,750 plus GST per annum on a four year lease running through to 2019 with two two-year rights of renewal.

Combined, the three tenancies generate an annual income of $351,750 plus GST. The building, with an Initial Evaluation Procedure (IEP) seismic assessment of more than 100 per cent, is being marketed for sale by auction on September 23 through Jamsheed Sidhwa and Luke Carran of Bayleys Manukau.

Sidhwa says the building is located in the middle of the property and therefore has easy access to car parking for 27 vehicles on the surrounding concrete area.

He says the well maintained property is located in a Business 5 zone which acts as a buffer between the heavier industrial activities of the Auckland Airport precinct’s Business 6 zone and the area’s residential neighbourhood just a few hundred metres away to the west.

Other businesses in the immediate vicinity include freight and logistics companies, goods management and storage warehouses, IT and software support businesses, a number of branded and standalone hotels, childcare facilities and telecommunications firms.  

Carran says the front portion of the building was converted into an open plan format about eight years ago. The fitness and health tenancy component of the property encompasses commercial grade toilets, showers and changing rooms, aerobics studio and machine weights on the upper mezzanine floor. An internal staircase links this area with the free-weights section of the gymnasium.

The ground floor, in addition to housing the Active Physio Clinic, also features two administration offices and a staff lunchroom accessed through a pair of swivel glass doors.

The Early Settler warehouse portion of the property occupies the rear half of the premises. The high stud warehouse with four bay roller door access under canopy coverage is a supplementary storage facility to Early Settler’s other warehouse which is separately leased at 40 Richard Pearse Drive.

The two properties are security fenced and use the same right of way access allowing efficient traffic management for both incoming and outgoing stock. On account of its expansion and success, Early Settler has been operating its distribution model from the conveniently adjoining two buildings and the common secure yard for six years.

The 40 Richard Pearse Drive property gives the company exposure to more than 50,000 vehicle movements every day, while 38 Richard Pearse Drive has given the company the extra capacity that it would not have otherwise had.

“The building has been carefully structured to offer both an attractive public frontage onto Richard Pearse Drive benefiting tenants with public clientele; while the rear warehousing facility complements its adjoining neighbours,” Carran says.

“The structural layout of the building means it can be maintained in its current format or at some point in the future it could reconfigured back into one larger single tenant warehousing and supporting commercial office complex. Even further, it could be reconfigured even into three separate commercial premises each with their own warehousing floor plate.

“From an investment perspective, that’s a huge degree of flexibility for any new owner underwritten of course by the long leases currently in place to a diverse tenancy mix.”

Sidhwa says the property’s closeness to the airport would provide an immediate access point to national and international markets for any potential future tenant involved with air freighting. 

What’s on offer?

The property: Freehold modern commercial building.

Location: 38 Richard Pearse Drive, Mangere.

Agency: Bayleys Manukau.

Sales method:  Auction on September 23.

Features:

  • 2841 sq m building leased to three established tenants.
  • 4854 sq m of freehold land on one title.
  • total annual rental income of $351,750 plus GST.
  • Several building re-configurations possible.
  • High traffic visibility. 

Jamsheed, Luke.jpg

Jamsheed Sidhwa, (left) &  Luke Carran, (right) of Bayleys Manukau.